At his state of the city address last week, Mayor Dave Kaptain touted another business coming to Elgin as a sign of continued, robust economic development taking place in the city.

"Thanks to the work of the Economic Development Group, the Fabricators & Manufacturers Association (International) will be moving its headquarters from Rockford to Elgin, bringing 75 jobs to the city," Kaptain said.

According to Economic Development Group Director Tony Lucenko, the association contacted the group in August after learning that the Economic Development Group is the arm of the Elgin Area Chamber of Commerce paid by the city for economic development work, including bringing new businesses to town.

"The development means a lot to the city of Elgin not only because of the initial investment, but also because FMA moving its national headquarters to Elgin will give the city recognition among manufacturers on a larger scale," Lucenko said. "The association will have training facilities here and produce thousands of publications annually that will have Elgin's name on them."

Mike Danahey / The Courier-News

Fabricators & Manufacturers Association International will be moving from Rockford to Elgin's Randall Point Executive Center in 2016.

Fabricators & Manufacturers Association International will be moving from Rockford to Elgin's Randall Point Executive Center in 2016. (Mike Danahey / The Courier-News)

Playing a role in getting FMA to relocate is Dan Corrado, who owns Elgin-based Pancor Construction & Development.

"The association recognized that Elgin is becoming a hub for business," Corrado said. "Its new location, with its proximity to Interstate 90, brings exposure that space affords as well as easier access to Chicago and O'Hare Airport. And they are aware there will be a Pace Park-n-Ride lot by the end of next year at Randall Road and 90."

"A huge number of our constituents are located in the northwest suburbs," Patricia Lee, the association's director of marketing, said Friday. "The area is a hub for businesses we work with, so the move puts us in the middle of the market and optimizes providing our services."

According to a Dec. 1 news release issued by the association, the group hopes to break ground on a new building in April and occupy it next November. Corrado said it will be in the Randall Point Executive Center on Elgin's northwest side off Randall Road and Point Boulevard.

Elgin Economic Development Group Director Tony Lucenko says 2015 has been another good year for business growth in the city.

Elgin Economic Development Group Director Tony Lucenko says 2015 has been another good year for business growth in the city. (Mike Danahey / The Courier-News)

Zelt also said, "The Elgin location will bring headquarters closer to the FMA Metal Fabrication Lab being built at Harper College in Palatine, which is set to open in January. And, our proximity to O'Hare is advantageous for all in our industry."

According to the release, the association does not intend to cut any of its 75 jobs with the move. Its own budget will accommodate the land purchase, building construction and relocation cost, and the 45-year-old, 2,500-member association plans to sell its Rockford building. Lucenko said no incentives have been offered through the city to bring the company to Elgin.

The association's move is another sign that the Elgin industrial market continues to be one of the strongest and most active markets in the Chicago area, Lucenko said.

"Institutional investment is pouring into the city, both for the purchase of existing industrial buildings and the construction of new speculative development," Lucenko said. "New industrial development continues to be one of the many positive aspects of Elgin's economy."

To those points, according to Lucenko, in 2014, the city issued permits for 395,000 square feet of new industrial buildings, including two significant speculative projects in the Randall Crossings Business Park.

"A 108,000-square-foot building was 100 percent immediately occupied by Heys USA and Top Flight, while a 225,000-square-foot building is fully occupied with Hanson Plastics, Great Lakes Technologies and Precision Color Graphics," Lucenko said. "Other notable 2014 activity included the expansion of Multifilm and Wisdom Adhesives, and the moves to Elgin of ThyssenKrupp, Rational Cooking Systems and Medela.

This year saw new industrial construction climb to 457,000 square feet, a 15 percent increase from 2014, Lucenko said.

"The surge in new construction was led by a 246,000-square-foot speculative building which is about to be completed on Alft Court in the Randall Crossing Business Park," he said. "This year also featured several major projects for Elgin: Motorola Solutions leasing 300,868 square feet at 2500 Galvin Drive, Box Partners leasing 205,620 square feet at 2501 Galvin Drive, Bucher Hydraulics purchasing a 110,343-square-foot building at 2545 Northwest Parkway, NTN Bearing leasing 150,000 square feet at Corporate Drive, and JIT The Packaging Wholesalers purchasing and moving into 480,000 square feet at 1717 Gifford Road (which had been a plant for Ball)."

"The industrial vacancy rate at the end of the third quarter was down year over year to around 7.2 percent in Elgin, while rents have continued to climb," Lucenko said.

Lucenko noted Elgin also welcomed many businesses to town this year. They include locations for chains such as Dunkin' Donuts, Tricoci University of Beauty Culture and Armanetti Wine & Spirits, along with family-owned businesses such as Advanced Internal Medicine, The Haight, Professional Inspection Services, 101 Mobility, In Motion Sports, and Violet Creek Family Dentistry.

"Elgin's automobile sector remains strong," Lucenko said. "The new Elgin Volkswagen opened their dealership in the Auto Mall just last week, joining Subaru just down Randall Road, which opened late last year. Existing dealerships that have recently expanded or remodeled include Ron Hopkins Ford, Biggers Chevrolet and Napleton KIA."

For 2016, Lucenko said, plans are underway for four large speculative industrial and office buildings that will have a combined square footage of over 1.1 million.

"On the drawing board are two possible build-to-suit corporate facilities. Moreover, two manufacturing companies from outside the area have secured space this year and plan to relocate to Elgin and start operations in 2016," he said.

According to Lucenko, a recent Elgin Development Group comprehensive retail market analysis revealed that Elgin's retail vacancy rate is at 8.2 percent, a figure lower than that found in either St. Charles (17.2 percent), Naperville (12.3 percent) or Aurora (10.1 percent).

"Because of the limited amount of retail space available in Elgin, 2016 may see new retail construction," Lucenko said.

This robust economic development activity demonstrates the value of the city's partnership with the Elgin Development Group in attracting businesses to Elgin, he said.

A version of this article appeared in print on December 06, 2015, in the News section of the Chicago Tribune with the headline "Elgin scores another business Association moves headquarters, brings 75 jobs" —
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